This blog is committed to the serious study and valid understanding of technical analysis and its objective application to stock selection, risk management and execution primarily in the context of trading stocks listed in the Philippine Stock Exchange (PSE).

Thursday, January 17, 2008

PSEi, 1/17/08

Change: Down 102pts (-3.1%) All sectors down.
Price and value traded: 3339 - 3339 - 3239 - 3248 - 4,063,096,850
Market breadth: -149
NFB: -1,471,355,544

Major trend: Undefined
Intermediate: Downtrend, accelerating
Near term: Downtrend
Major support/resistance: 3250/3770

Today, the PSEi broke through the trendline channel in quick fashion trying to find support at 3250. The next visible support below this level is the Aug2007 low of 2874. Negative market breadth and NFS confirms the seriousness of the decline. The index is nearing oversold levels so its not unreasonable to expect a stochastic pop in the short term (the Dow futures is actually up as I am writing this post) but it is likely that any upside correction will eventually be challenged by selling pressure.

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